Loyal customers now get best telecoms deals

– Broadband providers in Britain will have to tell customers about their best deals under planned new rules from telecoms regulator Ofcom, aimed at tackling a loyalty penalty that makes it difficult for long-standing customers to get the cheapest package.

Ofcom said yesterday it would review broadband companies’ pricing practices to examine why some customers paid more than others, and whether vulnerable customers needed extra protections to ensure they got a good deal.

Its proposed new rules would make broadband companies – as well as mobile, landline and payTV providers – alert customers about the best deal or tariff they can offer when any discounted deal comes to an end and also every year for longstanding customers.

Providers include BT, Virgin Media, Sky and TalkTalk.

Ofcom said 94% of Britain’s homes and office could get superfast broadband but less than half of them had taken it up, and about four million households with oldstyle, basic broadband were no longer in their initial contract period and could switch to superfast for the same or less money than they currently pay.

“We’re concerned that many loyal broadband customers aren’t getting the best deal they could,” Ofcom CEO Sharon White said. “So we’re reviewing broadband pricing practices and ensuring customers get clear, accurate information from their provider about the best deals they offer.”

TalkTalk said it welcomed Ofcom’s action. “In two years, we have lowered the gap between what new and existing customers pay to just £1 (R18) to £2 per month, while the average gap in the rest of the market has grown to £13 to £15,” CEO Tristia Harrison said.

Andrew Meehan US Customs and Border Protection spokesperson